Franchising and licensing: Two powerful ways to grow your business in any econom

Question

Franchising and licensing: Two powerful ways to grow your business in any economy (4th ed.)

Chapter 16 – Special Issues in Mergers and Acquisitions

Visit this site:  http://www.franchising.com/news/merger/

Scroll done and choose one of the mergers and share with your classmates:

The companies involved.

Did this merger make sense from a financial point of view or a growth point of view?

What is your personal view of the merger?

Will this merger affect the way you view the company or the products sold?

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Example: During the cola wars years ago, Pepsi and Coke were stuck – there really was no way to increase sales without taking market share from the competitor. Pepsi ended up purchasing Pizza Hut, Kentucky Fried Chicken and Taco Bell. Once purchased, all franchisees were required to sell Pepsi products.

Explanation / Answer

Example Taken : Red Robin Acquires 13 Franchised Restaurants In Texas

Did this merger make sense from a financial point of view or a growth point of view?

Answer :Red Robin is large group in hotel sector .This group was trying to expand their market at larger level.For this have tied up with 13 franchisees .The objective of this Merger is to be financial strong , also to be growth by capturing the market..

So yes by increasing more revenue , profit , market coverage this merger make sense from a financial point of view or a growth point of view

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What is your personal view of the merger?

Answer :

Yes I am agree with the statement . This merger helped lot to Red Robin group.

Following are the major points.

1) Increased revenue

2) Increased Profit

3) Increased Market Share

4) More Service to customer

5) Better facilities to previous employee as well New employee

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Will this merger affect the way you view the company or the products sold?

Answer :

The effect of merger will not be that much on company or the products sold.Red Robin group is big group.They have planned this merger on the objective of expansion of market .So definitely this will be positive impact on company.

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